How to Get Approved for a Loan

Loan Home Equity

From time to time many people find it necessary to get approved for a loan to make some kind of purchase. It may be a small purchase that requires a personal loan, or it may be a large purchase such as a house or car and require a large loan like a a mortgage. Getting approved for a loan can be a daunting task. This article will give you the steps and resources it takes to get approved for a loan.

Things You'll Need

• computer
• internet access
• credit reports from all three credit bureaus

Instructions

1. 

   Types of Loans
   There are three major types of loans. They are:
   1. Secured Loans
   2. Unsecured Loans
   3. Demand Loans

2. 

   Secured Loans
   A secured loan is a loan that uses collateral to back up the promise to repay the loan. A housing mortgage is a type of secured loan.

3. 

   Unsecured Loans
   An unsecured credit loan is a loan that does not require collateral to be used in order to get a loan approval. Several types of unsecured loans are:
   Credit Cards, personal loans, and lines of credit(Furniture and Appliance loans).

4. 

   Demand Loan
   A demand loan can be a secured credit loan or a unsecured credit loan. They typically have floating interest rates and no fixed date for repayment.

5. 

   Know Your Credit Score
   Before you apply for a loan, you really need to know what is on your credit score and what activity is showing up on your credit report. You can order a FREE credit report from each of the three major credit bureaus by going to www.annualcreditreport.com. I have put a link in the resource section below. Make sure you get a copy of your credit report from Equifax, Transunion, and Experian. Do not just order your credit report from one of the credit bureaus because credit reporting is not uniform across the board. Some items may show up on one report and not the other and you will need a complete and accurate of your credit history before you apply for a loan.

6. 

   Clean up Your Credit Report
   If you find any judgments,unpaid debt, or incorrect information on your credit report you should take immediate action and clean your credit report up before you apply for a loan. I have listed several resources in the resource section below if you need information about fixing your credit yourself or removing a judgment from your credit report. You should dispute any inaccurate credit history information. Take your time and look over your credit report with a fine tooth comb. I have had six or seven inaccuracies removed from my report alone and several others removed from my husbands credit report. Disputing inaccurate information will help you tremendously in your efforts to clean up your credit history. Please use the links below for more information.

Resources

• Wikipedia
• Annual Credit Report
• How to Get a Judgment From Your C
• How to Fix Your Credit Score Yourself